Financial News: German Inflation Rises To 8.7% As Estimated

German Inflation Rises To 8.7% As Estimated

(RTTNews) - Germany's consumer price inflation accelerated as initially estimated at the start of the year amid higher energy and food prices, official data showed Wednesday.

The consumer price index climbed 8.7 percent year-over-year in January, faster than the downwardly revised 8.1 percent rise in December, final data from Destatis revealed.

The latest inflation rate was in line with flash data published on February 9.

The statistical office has rebased the consumer price index to 2020 from 2015.

Energy product prices were 23.1 percent more expensive compared to last year despite the relief measures taken by the government. 

Nonetheless, the increase in energy prices is slowed to some extent by the electricity, natural gas and district heating price freezes, the agency said. 

Excluding energy, the inflation rate stood at 7.2 percent at the beginning of 2023.

The annual price growth for food items was 20.3 percent in January, which was more than twice the overall inflation rate again, largely led by higher costs for dairy products and eggs, and edible fats and oils.   

The prices of goods in total grew 12.7 percent on year, and charges paid for services moved up 4.5 percent.

Inflation, based on the harmonized index of consumer prices, meanwhile, eased to 9.2 percent from 9.6 percent in December, as estimated. 

Month-on-month, the HICP grew 0.5 percent, and consumer prices gained 1.0 percent in January. There was no change in figures compared with the earlier estimate.

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